Asking Price Contact for pricing
Area Size
NOI Net Operating Income N/A
NIY N/A

Documents

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Create an account on the Investor Center to save your search and investment preferences, save and share opportunities, access exclusive documents, and more. More questions? Visit our FAQ. You'll need to sign a Confidentiality Agreement (CA) to access exclusive documents in the Deal Room. Signing the CA means you agree not to divulge or release sensitive information related to this property. More questions? Visit our FAQ.

Attributes

Year Built 2005
Building Area Gross
Number of units 168
Occupancy 98.0 %

Asset Description

Jones Lang LaSalle (“JLL) has been exclusively retained to facilitate the sale of The Magellan, located at 35-39 W. 33rd Street, New York, NY (the “Property”), a 35-story, 168-unit multifamily property in Midtown South, Manhattan. The Property represents a rare opportunity to purchase a family-owned asset with various value-add opportunities in the near term. The Property’s irreplaceable location next to the world-renowned Empire State Building provides unparalleled commutes throughout the New York MSA via 16 NYC MTA train lines, Penn Station, Grand Central Terminal, and offers stunning views of the Midtown skyline from most units. The next owner can immediately start renovating the units and amenities given the significant spread between in-place preferential rents and maximum legal rents. 

Investment Highlights

Upside in Rent

  • Approximately a 100% spread between preferential and legal rents 
  • Competitive properties are achieving approximately $90/SF compared to The Magellan achieving $67/SF which represents a 34% rent premium
  • Market rate units become unregulated after 421-a expiration in June 2026

 

Value-Add Opportunities

  • A new owner can renovate units and amenities immediately to compete with newer Class A product  
  • Renovation opportunities include installing new countertops, cabinets, backsplashes, washers and dryers, appliances, customized closets to optimize space for couples, purchasing new fitness center equipment and FF&E for the amenity spaces, updating the lobby with artwork and transit screens, and converting the TV room to a co-working lounge or a yoga/spin studio 
  • Lease the 800 SF vacant retail space

 

Core Manhattan Location 

  • On 33rd St between 5th and 6th Ave with 16 different train lines nearby 
  • 5-to-10-minute access to financial and tech job growth on the east and west side of Manhattan 
  • Walking distance to Penn Station and Grand Central, and a 15-minute commute to Hudson Yards

 

Discount to Replacement Cost 

  • With ubiquitous inflation across hard costs and labor, the Magellan represents a 25% discount to replacement cost  

 

Strong Supply / Demand Fundamentals

  • From 2022 to 2025 there will be 188,000 more jobs added than units built in Manhattan
  • Affordable NY expiring in June 2022 will diminish supply 

 

Discount to Owning

  • The average condo price in Manhattan is $1.9M which prices out many millennials and forces them to rent longer than other markets
Last Updated Date: 11 Mar 2022

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Last Updated Date: 11 Mar 2022

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